Issues with Traditional Systems

E-commerce deliveries involve intricate supply chains that include manufacturers, suppliers, warehouses, logistics providers, and last-mile delivery services. Traditional systems managing these operations are often fragmented, relying on outdated databases and manual record-keeping. Each entity maintains its own version of transaction records, leading to inconsistencies and inefficiencies. Without a unified system, tracking packages accurately, resolving disputes, and providing customers with real-time updates become challenging. This lack of coordination creates bottlenecks that delay shipments and add costs throughout the supply chain.

One of the most significant issues in traditional e-commerce logistics is the lack of transparency. Once a package is handed off from one entity to another, customers and even businesses have limited visibility into its journey. Tracking updates may be delayed or inaccurate, leading to vague status updates like “in transit” without clear information about the package’s location. If a package is lost or delayed, identifying the cause often becomes a slow and frustrating process. Retailers struggle to obtain reliable information from logistics partners, leaving customers with little recourse beyond waiting or filing complaints.

Data silos worsen inefficiencies in e-commerce logistics. Each company involved maintains internal records that do not automatically sync with others. If an error occurs at one stage—like an incorrect shipping label or inventory miscount—it may go unnoticed until the package fails to arrive at its destination. Resolving discrepancies requires time-consuming manual interventions, such as emails, phone calls, and audits among multiple organizations. This lack of seamless data sharing results in costly delays, miscommunication, and missed delivery deadlines, undermining the overall reliability of the supply chain.

Fraud remains a persistent challenge in traditional e-commerce supply chains. Issues like counterfeit goods, fake tracking numbers, and package theft create complications for businesses and customers. Malicious actors can manipulate records, claim refunds for undelivered items, or reroute packages without the knowledge of the customer or retailer. Because traditional tracking systems lack an immutable history of transactions, proving what transpired during a fraudulent incident becomes difficult. This vulnerability erodes trust in the supply chain and heightens the risk for all participants.

Operational inefficiencies are prevalent throughout the delivery process. Traditional logistics heavily rely on paperwork, manual data entry, and human oversight, increasing the risk of errors. Mislabeling, incorrect routing, and customs delays stem from outdated processes. Warehouses and fulfillment centers often struggle with inaccurate inventory counts, leading to stock shortages or overpromising delivery timelines. As order volumes rise, particularly during peak shopping seasons, these inefficiencies become more pronounced, resulting in longer wait times, higher shipping costs, and dissatisfied customers. E-commerce companies face immense pressure to meet growing consumer expectations for faster and more reliable deliveries, yet traditional systems fall short in addressing these demands.